The 2025 Excessive Development Research, Authorities Contracting Version has arrived, and right this moment we’re excited to share a number of necessary findings with you. We launched this annual research {of professional} companies a decade in the past, although its roots return to 2008, once we started researching high-growth companies, publishing our findings and writing books on the habits of the perfect performing companies and the individuals who purchase their companies.
We collected the info for this yr’s research late in 2024—earlier than the US election and the turbulence that’s disrupting the federal authorities contracting market. Nonetheless, this research explores what methods and methods high-growth companies use to realize a bonus over their rivals. These advertising and marketing fundamentals proceed to work, even in an unsure setting. So long as there’s authorities demand for companies—and we see no indication that it’s going away—companies that navigate {the marketplace} with talent will expertise larger success.
On the federal stage, and to a lesser diploma the state and native ranges, new expectations require new positioning and messaging. Some companies might must reconfigure their companies to deal with the evolving wants of a authorities in transition. However the psychology of patrons hasn’t modified. On the identical time, how companies talk their new messages, and the array of methods, instruments and methods obtainable to ship them, are the identical as ever. Some mixtures produce bizarre outcomes, whereas others ship distinctive ones. On this weblog publish, we’ll introduce you to some of the advertising and marketing methods and habits of the federal government contracting business’s most extraordinary performers.
In regards to the Research
126 authorities contracting companies participated on this yr’s research. They characterize $53.6 billion in mixed income and 140,000 staff. As you possibly can see within the chart under, the pattern included organizations of all sizes. We oversampled massive companies to average the distortions that small and significantly micro companies can introduce to the info.
5 Advertising Habits of Excessive-Development Know-how & Software program Companies
1. Excessive-Development Companies Develop 3.5X Quicker and are 79% Extra Worthwhile
The high-growth group in our pattern grew revenues a median of 35.8% per yr, in comparison with simply 10.2% for the average-growth contingent. That’s 3.5 occasions quicker. Their revenue margins have been additionally distinctive, at 34%. The typical-growth group generated a really respectable 19% revenue margin, however the high-growth companies outperformed them by 79%.
2. They Spend Greater than Twice as A lot on Advertising
How a lot do the quickest rising authorities contractors put money into advertising and marketing? An eye fixed-popping 21%—two and a 3rd occasions greater than their slower-growing counterparts. Do you have to dedicate a fifth of your income to advertising and marketing? Not essentially. This can be a median quantity, so half of the high-growth group spends much less and half much more.
What do these excessive flyers spend their advertising and marketing {dollars} on? They’re greater than twice as prone to have achieved the very best stage of digital maturity, in order that they make investments closely of their tech stack. They conduct quite a lot of analysis at common intervals. They usually outsource a greater diversity of specialised advertising and marketing expertise than their rivals. The additional cash they spend seems to provide dramatically higher outcomes.
3. They Have Realized Which Advertising Strategies Work Finest
The determine under exhibits the seven advertising and marketing methods used most frequently by high-growth authorities contractors. Networking—on-line and in individual—takes two of the highest three spots. Clearly, making private connections is a crucial ingredient in these companies’ success. In second place are enterprise improvement supplies, comparable to pitch decks, brochures and proposal templates. Making an awesome impression, and positioning your agency as a classy participant, can transfer a agency from being a mere contender to a high favourite. Promoting on social media can be a generally used technique to construct model consciousness.
Social media seems 3 times on this record, together with selling thought management (comparable to white papers, articles, and government guides) on social platforms. If social media isn’t a serious a part of your advertising and marketing technique, you could wish to start constructing that experience, or outsource it to an skilled company.
To search out out which methods ship essentially the most influence, and which offer the perfect outcomes for the money and time invested, see the total business report.
4. 6 in 10 Excessive-Development Agency Leads are Digital
The excessive development cohort attracts 68% extra digital leads than their no-growth counterparts. Actually six in ten of their leads come from on-line sources. Digital leads can come from any on-line supply—the contact type in your web site, content material advertising and marketing, social media, webinars, and digital promoting, to call only a few. For those who obtain the lead in your laptop or digital machine, it’s a digital lead.
How do you appeal to extra digital leads? That requires a multifront digital technique, beginning together with your web site. A weblog that contains a regular stream of high-quality instructional content material and optimized for website positioning drives new guests. Gated, high-value, long-format content material and a compelling supply technique convert guests into contacts. You then use e-mail, social media and different methods to share extra of your content material and encourage individuals enthusiastic about your experience to return many times. Ultimately, a few of these individuals grow to be loyal followers. And when they’re prepared to purchase companies your agency is routinely on the high of their record.
5. They Outsource a Broad Vary of Expertise
The chart under lists the three expertise that the best-performing companies outsource most steadily. Podcasts and conventional promoting are tied for first place. Producing a podcast requires group and specialised expertise, from audio manufacturing and enhancing to visitor outreach, scheduling, and followup. Many companies want to outsource the extra technical expertise to specialists—saving numerous hours and producing a superior finish product. Conventional promoting, whether or not in print, radio or tv, additionally requires particular experience (comparable to media shopping for, top-shelf graphic design and advert copywriting) that almost all authorities contractors don’t have in-house. SEO is a perform important to the efficiency of a agency’s web site. With the comparatively latest introductions of zero-click search and generative AI search (comparable to ChatGPT), the sphere is evolving shortly. Excessive-growth companies search for assist from exterior specialists who’re conversant in the brand new website positioning panorama and know the best way to obtain outcomes.
The right way to Study Extra
We hope you’ve discovered one thing new—an concept or two you possibly can put into observe at your agency. Excessive-growth companies produce superior efficiency yr after yr for a cause: they’ve found what works and what doesn’t. Now you can begin emulating them and construct a advertising and marketing program that works extra effectively, with much less guesswork.
These 5 insights, nevertheless, are only a starting. To study extra in regards to the advertising and marketing habits of the quickest rising know-how and software program companies, buy the total business report. The 54-page report goes into larger element on these and plenty of different sensible findings. It additionally contains easy-to-understand concepts to place the info into observe at your group.
